According to the U.S. Census Bureau, construction spending during July 2024 was estimated at a seasonally adjusted annual rate of $2,162.7 billion, 0.3% (±1.0%) below the revised June estimate of $2,169.0 billion. The July figure is 6.7% (±1.8%) above the July 2023 estimate of $2,027.4 billion.
During the first seven months of this year, construction spending amounted to $1,237.5 billion, 8.8% (±1.2%) above the $1,137.4 billion for the same period in 2023.
In July, the estimated seasonally adjusted annual rate of public construction spending was $484.0 billion, 0.1% (±1.8%) above the revised June estimate of $483.5 billion.
- Highway construction was at a seasonally adjusted annual rate of $140.9 billion, 0.8% (±4.6%) below the revised June estimate of $142.0 billion.
- Educational construction was at a seasonally adjusted annual rate of $100.8 billion, 0.9% (±2.6%) below the revised June estimate of $101.8 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,678.7 billion, 0.4% (±0.7%) below the revised June estimate of $1,685.5 billion.
- Residential construction was at a seasonally adjusted annual rate of $941.6 billion in July, 0.4% (±1.3%) below the revised June estimate of $945.3 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $737.2 billion in July, 0.4% (±0.7%) below the revised June estimate of $740.2 billion.
“Nearly all spending categories show increases from a year ago but have fluctuated in recent months,” said Ken Simonson, Associated General Contractors of America chief economist. “Our workforce survey suggests this pattern is due in part to a worsening shortage of qualified workers.”
Construction spending, not adjusted for inflation, totaled $2.162 trillion at a seasonally adjusted annual rate in July. That figure is 0.3% below the June rate, but 6.7% above the July 2023 level. The May and June estimates were revised up, showing that spending was flat in June rather than declining, as initially reported.
“Nonresidential construction spending declined for the second consecutive month in July but remains just 0.4% below the all-time high established in May,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu.
“While Hurricane Beryl, which interrupted construction activity along the Gulf Coast in early July, contributed to the month’s weak construction spending data, the cumulative effect of high interest rates likely bears more blame,” said Basu. “This is particularly true for nonresidential spending in the private sector, which fell 0.4% for the month and is up just 4.5% over the past year.
“Less than half of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, a clear indication that the industry is eagerly awaiting lower interest rates,” said Basu. “Fortunately, it’s all but certain that the Federal Reserve will begin lowering rates at its September meeting. The remaining question is whether it will be a 25- or 50-basis point cut.”